Saturday, November 12, 2016

Modi's poor home work

Modi’s government has done very poor home work before launching
surgical strike on black money. The
objective of controlling or eliminating black money is certainly the need of
the hour. On 7th November
night he announced the cancellation of 500 and 1000 currency notes effective
from night and asked us to exchange with new notes from bank from 9th
November onward.

It generates mixed responses and I don’t know whether to
welcome this decision or worried about repercussions from common man. Perhaps, accepted the decision as a bold and
brave from Modi for the sake of the nation, but is 1.25 billion people can
handle the transformation with shock?

The currency in our purse become useless, yes the validity
of the currency is depends on the acceptance in market and therefore
technically it is useless. Indian
citizen accepts the decision and patiently waiting for the banks to open and
exchange their cash on hand and now slowly landing in frustration.

Petrol stations refused to accept old currencies though
government told that they will accept.
Many shops are closed due to lack of cash in villages and towns. Family occasions like marriages and other
ceremonies are either postponed or cancelled.
Daily wagers have lost their income and are in desperate to find food
for their family members. Government
ration shops are getting looted as reported one in Madhya Pradesh. Bank employees have forced to forget their own
family and are struggling with enormous shock in handling the massive cash
exchanges. Servers are breaking down between branches and headquarters. Bank employees are prone to exaggerated
common people if the situation continues for another week.

The flaw in implementing the decision is slowly boomeranging
and now the Finance minister is advising that it will take at least another
twenty one days to become normal. RBI is
keep announcing that we have enough cash to replace but in reality branches are
emptied with whatever cash they have. I
have many questions on this implementation method and I am expecting the
responsible authorities from government to answer me because I am a good
citizen of the country and do all my financial transactions through bank and
pay taxes on time.

1)It was announced in
television channels that the decision is taken between PM and FM with Amit Shah
on loop to keep the decision and implementation is secret. But Venkaiyah Naidu briefed in press
conference that they discussed this in their very first cabinet meeting. Have they discussed the very method of
sending surgical strike on common man?

2)Finance minister claims
that RBI was preparing this moment by printing enough replacement currencies? If so, what measures was taken to prevent the
news leaking to some people within the government? Government cannot dismiss Arvind
Kejriwal’s questions as liars since there are conflicting news coming out from
market.

3)If RBI was planning to replace
the currency, why don’t they release 500 and 1000 denominations which will ease
the public in conducting their daily expenses?
Note that this won’t require calibrating the machine since the dimension
of the currency is similar.

4)What is the necessity of
releasing 2000 denominations now while the common man is struggling to exchange
in market due to lack of lower denominations?

5)Does RBI know that
calibrating the machine to accommodate 2000 notes will take many days including
dry run with software and system?

6)Why not RBI discreetly
releasing only 100 notes in ATM across the country for a month prior to announcement?

7)What is the purpose of this
strike? Black money or tax evasion by
cash parellel economy?

8)To my mind, the surgical
strike is not against black money since government has the list of black money
hoarders and why don’t governments pass a law in parliament or use existing law
to arrest those black money hoarders from the list? Why does government need to
push them by suffering common men? Is
government is spineless to expose them in public?

9)So, the surgical strike is
against parallel unorganized cash economy, not against black money. So, why does the government need to fool
ordinary people like me by naming it fight against black money?

10)While cash economy is part
and parcel of the nation and if government want to people to shift from cash to
cashless economy, why do they need to penalize 200% on the people who deposit
the amount?

11)Don’t they throw the cash
on water or burn it since they would be paying almost 90% of the deposited
amount as tax and penalties? What does
the government benefit by destroying those valid notes?

12)Don’t they know that
destroying valid notes will create huge pressure on market flow, thus depriving
the livelihood of millions people? If
so, what is government’s compensation to them since they are the victims?

13)Government is trumpeting
that yesterday alone 58 thousand Crore Rupees deposited in bank, but how much
they returned as exchange? Because, it
is advised people to exchange only 4,000 and excess to be deposited.

14)How much we are losing on
daily basis in market due to no cash? Where are the data?

15)Total Indian economy is crippled
due to millions of people on road leaving their works. Will government issues a white paper about
this historic decision and subsequent effects including data?

Every decision is validated, appreciated or condemned after its outcome. We will applaud the government if the outcome
is as desired, otherwise, Modi is shining only for those urban elites and not
with common men and women. India is made
of common men and women, not urban elites.
Vajpayee made the mistake of believing India is shining under his rule
and Modi will land up in same destination if he did not learn from Vajpayee
mistakes.